Financial Statements

Table A

Summary income statement based on proportional consolidation

The following pro forma information does not form part of the consolidated primary statements or the notes thereto. It presents the results of the Group, with funds and joint ventures consolidated on a line by line, i.e. proportional basis. The underlying profit before tax (£228m) and total profit after tax (£1,249m) are the same as presented in the financial statements.

  Year ended
31 March
2006
£m		 Year ended
31 March
2005
£m
Gross rental income 751 630
Net rental income 701 585
Fees and other income 51 9
Administrative expenses (88) (53)
Net interest costs (436) (360)
Underlying profit before tax 228 181
Debt refinancing costs (122) (180)
Revaluation of properties and investments 1,658 753
Gains on property disposals 182 26
Amortisation of intangible asset (10)  
Impairment of goodwill (240)  
Profit on ordinary activities before tax 1,696 780
Tax charge relating to underlying profit (43) (42)
Deferred tax arising on revaluation movements (404) (84)
  (447) (126)
Profit for the year after taxation 1,249 654
     
Underlying earnings per share – diluted basis 36p 27p

The underlying earnings per share is calculated on pre-tax profit of £228m (2005: £181m), tax attributable to underlying profits of £43m (2005: £42m) and fully diluted shares numbering 521m (2005: 519m). Gross rental income excludes service charge receivable.

Pro-forma summary balance sheets based on proportional consolidation

The following pro forma information does not form part of the consolidated primary statements or the notes thereto. It presents the composition of the EPRA net assets of the Group, with share of funds and joint venture assets and liabilities included on a line by line, i.e. proportional basis and assuming full dilution.

  2006
£m		 2005
£m
Retail properties 8,775 6,879
Office properties 5,200 4,849
Other properties 439 779
Total properties 14,414 12,507
Other investments 250 153
Intangible assets 65  
Other net liabilities (243) (209)
Net debt (6,684) (6,538)
EPRA net assets 7,802 5,913
     
EPRA NAV per share 1486p 1128p

Calculation of EPRA NNNAV per share 2006
£m		 2005
£m
EPRA net assets 7,802 5,913
Less:    
Deferred tax arising on revaluation movements (1,530) (963)
Mark-to-market on interest rate swaps (33) (24)
Mark-to-market on interest rate swaps (386) (278)
Tax relief arising thereon 125 90
EPRA triple net asset value 5,978 4,738
     
EPRA NNNAV per share 1139p 904p

Total property valuations including share of funds and joint ventures 2006
£m		 2005
£m
British Land Group 11,753 11,154
Share of funds and joint ventures    
Investment properties 2,651 1,321
Development properties   4
Trading properties at cost 4 25
Finance lease properties 7 8
External valuation surplus on trading properties 3 2
External valuation surplus on finance lease properties 4 4
Head lease liabilities (8) (11)
  2,661 1,353
Total property portfolio valuation 14,414 12,507

Pro-forma summary balance sheets based on proportional consolidation and assuming full dilution

  Group
£m		 Share
of funds
£m		 Share of
joint
ventures
£m		 Deferred
tax
£m		 Mark-to-
market of
interest
rate swaps
£m		 Surplus on
trading
properties
£m		 Dilution
effect of
options
£m		 Head
lease
£m		 EPRA
Net assets
2006
£m		 EPRA
Net assets
2005
£m
Total properties 11,714 1,225 1,429     74   (28) 14,414 12,507
Investment in funds and jvs 1,234 (645) (589)              
Other investments 248               248 153
Intangible assets 65               65  
Other net liabilities (1,652) (105) (191) 1,636     43 28 (241) (209)
Net debt (5,593) (475) (649)   33       (6,684) (6,538)
Net assets 6,016     1,636 33 74 43   7,802 5,913
                     
EPRA NAV per share                 1486p 1128p